Inheritance Tax

[bob561941]

I believe the maximum a parent can give to a child per year is £3,000(more if the child is getting married),What happens if the parent gives more say £20,000
per child is this illegal ? I think the parent has to survive for 7 years before any gifts are not subject to inheritance tax. Any advice on this is welcome.

Thanks

[woofgang]

no limit on what you can give a child, or anyone else.
http://www.saga.co.uk/magazine/money/personal-finance/giving/will-my-children-or-i-get-taxed-on-money-i-give-them.aspx#

[fiction-factory]

Is the estate of the the donor likely to fall into IHT bands- usually over £650000 or so for a couple.
You can give gifts from income too.
It's best to use an specialist IHT avoidance advice site- Which, MSE or similar

[Peter Pedant]

oh - love the Thomas Chatterton icon
( that wondrous boy - Horace Walpole who shafted him )

no it is not illegal it is a potentially exempt transfer
and ceased to be a PET after seven years

remember on your death you can transfer £325k ( or whatever it is on your death ) free and the £20k will count against that

try googling Potentially exempt transfer

and there is the govt handbook here
http://www.hmrc.gov.uk/manuals/ihtmanual/ihtm04057.htm

have hours of innocent fun

Remember rules on serial giving
if you give 20k and then 30 k two years later it is counted as 50k and the clock starts again ( at the 30k point )